Can Interest Rates Go Even Lower?

“A wise man will make more opportunities than he finds.“–Sir Francis Bacon

(Sun rise at The Sea Ranch // Image 1)

We were at dinner with friends whose mortgage I refinanced six months ago. Before leaving for dinner, I checked if the interest rates were low enough to justify another no cost refinancing, and they were. They could lower their monthly payments by another $107/month.

When I shared the exciting news with them, the wife asked me the question–“Can the rates go down even lower?”

We could have asked the same question six months ago, but who knew? According to a recent article in the Wall Street Journal, the interest rates could be lower at the present. However, big banks who control interest rates keep them higher, to make more profits. Since overall interest rates are quite low, no one complains. To stimulate the economy, the Federal Reserve continues to buy Fannie Mae mortgages in the rate of 40 billion a month. As long as banks continue to make huge profits and consumers have extra cash every month by refinancing, why lower interest rates even more? Actually, rates started to go up in the first week of 2013, possibly as a result of the good feeling from averting the “fiscal cliff”. Refinancing has become “a big business”. Why else would the article, Refi, Save, Repeat be in the San Francisco Chronicle‘s Business Report Section?  

I stopped being surprised, but many of our clients actually do not refinance their mortgage to lower their interest rates. They are either saboteurs who do not want to help the economy, procrastinators who do not want to deal with all the extra paper work, or own shares of the banks whom they are making higher payments to.

Can you come up with another reason why some of my clients, whom I contacted and emailed loan applications to, do not even respond to my emails? How would you react if your favorite Bank/Lender sent you a letter asking to pay them $100, $200, $300, or even more every month? But this is exactly what those who wait for the interest rates to go down even lower do. Please do not wait. Remember “a small bird in the hand“?


(Sun rise at The Sea Ranch // Image 2)


On January 13, I can no longer pretend that I am dyslexic. In 2012, when someone asked my age, I would say that I was 56. Now just one year later, I am turning 66. When people ask me when I plan to retire, I suggest that they should stick around for another 30 years. I actually want to follow the example of Irving Kahnwho at 107 is still a stock picker.

A client told me that when her father turned 99 and was asked his age, he would claim that he was 66. Apparently, dyslexia can be contagious.

So much to do, so little time.

As I’ve mentioned in my last email, I started writing a new book–a sequel to “The Mortgage Game: The 5 C’s and How to Connect Them”. A few copies of which can still be purchased online. I will keep you posted on the development.

Since some of you have expressed that you like my photos, I decided to show you how modern technology can help improve images to make them more interesting. Please email me and let me know which version most appeals to you–Image 1, Image 2, or Image 3.

(Sun rise at The Sea Ranch // Image 3)

And as always, please do not forget–


Best Wishes,